HR3982-119

What This Bill Does

This bill creates a Tariff Response And Damages to Exports Fund, called the TRADE Fund, inside the Treasury general fund. The President may deposit into it revenues from duties on imported articles classified under chapters 1 through 24 of the Harmonized Tariff Schedule, which cover agricultural, food, animal, plant, and related products. Amounts in the fund are available to the Agriculture Secretary without further appropriation and without fiscal-year limits. USDA must use deposited amounts to make payments to agricultural producers affected by export competition, reduced access to foreign markets, or other trade-related market disruptions, including decreased exports, foreign tariff or non-tariff barriers, or increased costs for goods needed to produce agricultural commodities and livestock. Within 60 days after each fiscal year in which direct payments are made, USDA must report to House and Senate agriculture and appropriations committees on revenues transferred, economic impacts on affected producers, and assistance provided.

Who Benefits and How

Agricultural producers benefit from direct payments when USDA finds they were harmed by export competition, foreign-market loss, or trade-related disruptions. Livestock producers benefit if higher input costs or foreign barriers tied to trade disruptions qualify for assistance. Farmers facing decreased exports benefit from a dedicated fund using tariff revenues rather than annual appropriations. USDA trade assistance staff benefit from a standing payment authority for tariff-response aid.

Who Bears the Burden and How

Importers of chapter 1 through 24 goods may see tariff revenues redirected into the TRADE Fund rather than general Treasury use. USDA payment staff must determine affected producers, calculate assistance, and report annually to Congress. Federal taxpayers bear fiscal risk because fund amounts are available without later appropriation or fiscal-year limitation. Congressional agriculture committees must review annual reports on revenue transfers, economic impacts, and assistance summaries.

Key Provisions

• Creates the Treasury TRADE Fund for tariff-response assistance.
• Authorizes the President to deposit duties from HTS chapters 1 through 24 imports.
• Directs USDA payments to agricultural producers harmed by export competition, reduced market access, or trade disruptions.
• Includes losses from decreased exports, foreign tariff or non-tariff barriers, and higher production input costs.
• Requires annual reports within 60 days after fiscal years with direct payments.